Higher prices take shine off gold in first quarter

Published: May 24, 2016 7:09 AM

India’s gold demand dropped by 39% year-on-year to 116.5 tonne in the first quarter of this year because of the jewellers’ strike over re-introduction of excise duty and rise in prices of the yellow metal.

India’s gold demand dropped by 39% year-on-year to 116.5 tonne in the first quarter of this year because of the jewellers’ strike over re-introduction of excise duty and rise in prices of the yellow metal. Jewellery demand declined 41% y-o-y to 88.4 tonne and demand for bar and coin dropped 31% to 28 tonne. The government regulation mandating PAN card details for gold purchases above Rs 2 lakh have dented the demand for the precious metal. In mid-January, gold prices touched R26,000 per 10 gram and surged higher to Rs 30,000 by the end of March, which sent a strong signal to consumers to hold off on buying gold jewellery until prices stabilised.

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